| Online tax filing has gotten easier and cheaper. Unless | | | | sold during the year |
| you have complicated items to deal with in your tax | | | | - Decide if you want to make an IRA or Roth IRA |
| return or you are new to your own business and need | | | | contribution |
| a tax accountant to help you with your accounting, you | | | | Mistake #2 - Feeling like you have to finish the process |
| probably can file your own taxes with the right | | | | in one sitting. |
| software. If you are ready to give it a try, avoid these | | | | Instead - Print the return and put it aside for a few |
| 3 time wasting mistakes: | | | | hours or until the next day. Then review the forms to |
| Mistake #1 - Starting unprepared. Good tax software | | | | see if the amounts look reasonable. Review your tax |
| steps you through the return in a question and answer | | | | file to make sure you haven't forgotten to include |
| format. If on every question you have to rummage | | | | something. When you are satisfied that everything |
| through your files or stacks of paper, you will lose your | | | | checks out, you can sign and mail the return or log |
| train of thought and the process will take much longer. | | | | back into your account to e-file the return. If you found |
| Instead - Gather the basic information before you start | | | | errors or omissions, it is easy enough to make the |
| which may include: | | | | corrections. |
| - Last years tax return | | | | Mistake #3 - And this is the biggie. Waiting until the last |
| - Social security numbers of you, your spouse and | | | | minute! The looming deadline can be a big motivator, |
| your children | | | | but it can also cost you money because you are more |
| - Your bank account # and routing # (if you want the | | | | likely to make a mistake. |
| IRS to directly deposit your refund or collect any tax | | | | Instead - Start now finding all those forms and your |
| owed) | | | | records. Use last year's return as a guide and begin |
| - W-2 forms from your employers | | | | the paper treasure hunt. If the task is too |
| - 1099 forms from your bank and brokerage firm | | | | overwhelming, work for an hour and come back to it |
| - Deduction information (mortgage interest, state tax | | | | the next day. And while you are at it, create a "This |
| payments, real estate tax receipts, charitable gifts, etc.) | | | | Year's Taxes" file and any time during the year you |
| - Business income and expenses if you are self | | | | get mail or have receipts that will apply to that year's |
| employed | | | | return, toss it in the file. You will be so glad you did next |
| - Cost basis information on any investments that you | | | | year when it's time to file. |